Total debts, liabilities jump by 29pc in FY23

Pakistan’s total debt and liabilities surged by 29 per cent, or Rs17.332 trillion in FY23 to reach Rs77.104tr during FY23, compared to Rs59.772tr in FY22, according to the State Bank of Pakistan’s latest data released on Wednesday. However, the gross external debt of the country declined by $6 billion during the same fiscal year, reaching $124.3bn compared to $130.3bn in FY22. The SBP reported that as a percentage of GDP, total debt and liabilities reached 91.1 per cent, up from 89.7pc in FY22. Excluding liabilities, the total debt of the country in FY23 stood at $72.991tr, compared to Rs56.837tr in FY22. This represents a growth of 28.4pc, compared to 24.7pc in the preceding fiscal year FY22. As a percentage of GDP, the debt was 86.2pc, compared to 85.3pc in the previous fiscal year. The data indicates that domestic debt rose to Rs38.8tr in FY23, up from Rs31.085tr in the previous fiscal year. The impact of this substantial debt and liabilities on the economy is evident from the debt servicing, which reached Rs9.819tr in FY23, compared to Rs5.578tr in FY22. This reflects a year-on-year growth of 76pc and a percentage of GDP at 11.6pc, compared to 8.4pc in FY22.